McDonald's(US:MCD) Ge Long Hui·2025-08-06 13:44Core Insights - McDonald's reported strong Q2 2025 earnings, with revenue and profit growth driven by eye-catching promotional activities, achieving a 3.8% increase in global same-store sales, reversing the decline from the previous year [1][5]. Financial Performance - Revenue for Q2 reached $6.84 billion, a 5% year-over-year increase, surpassing market expectations of $6.71 billion [1]. - Net income attributable to shareholders was $2.25 billion, an 11% increase compared to the previous year [2]. - Diluted earnings per share (EPS) were $3.14, with a non-GAAP adjusted EPS of $3.19, both exceeding analyst expectations [3]. Same-Store Sales Growth - Global same-store sales increased by 3.8%, marking the largest growth in nearly two years and exceeding the expected 2.5% [4]. - In the U.S., same-store sales grew by 2.5%, reversing a two-quarter decline and surpassing analyst expectations of 2.3% [5]. - Internationally, the franchise market (including Japan and China) saw a 5.6% increase in same-store sales, with Japan outperforming expectations at over 3.6% [5]. Strategic Initiatives - McDonald's management attributed the recovery in growth to a dual return of customer trust in brand value and high cost-performance [6]. - The company emphasized its value leadership through the introduction of value meals, innovative products like McCrispy Chicken, and promotional marketing tied to the "My World" movie [7]. Market Reaction - Following the earnings announcement, McDonald's stock rose by 3% in pre-market trading [8]. - Analysts view McDonald's performance as commendable amidst rising costs and weak demand in the broader restaurant industry [10]. - Investment bank Wedbush noted that the earnings report reinforces McDonald's defensive and growth resilience in uncertain environments [11].